Robo-taxi market to reach nearly 4 mil units by 2030
According to the new market research report "Robo-Taxi Market by Application (Goods and Passenger), Level of Autonomy (L4 and L5), Vehicle (Car and Shuttle/Van), Service (Rental and Station Based), Propulsion (Electric, Hybrid, and Fuel Cell), Component, and Region - Global Forecast to 2030," published by MarketsandMarkets, the global robo-taxi market is projected to grow from 2024 units in 2020 to reach 3,830,912 units by 2030, at a CAGR of 112.67%.
The car segment is expected to be the largest and the fastest market. This is due to more testing of robo-taxis for cars rather than big transport vehicles. Waymo recently became the first company to charge members of the public for rides in self-driving Waymo One, which had human backup drivers. Another example is Chrysler, which has ordered thousands of Chrysler Pacifica Hybrid minivans to Waymo. The collaboration will open a new business model for companies developing or working on robo-taxis. Uber placed an order for 24,000 Volvo XC90 SUVs for autonomous ridesharing services to scale its market share in autonomous vehicles. Additionally, the rising demand for shared mobility will also fuel the overall market demand for self-driving cars.
Although countries worldwide have already started operations for goods transportation via robo-taxis, passenger transportation is estimated to be the fastest and the largest growing market. This is due to a greater focus on development, testing, and deployment for passenger transportation compared to goods. Companies such as Uber, Lyft, DiDi, and Baidu are the major ride-hailing service providers that will boost the market demand for passenger transportation. In addition, most companies are concentrating on mobility as a service (MaaS). For instance, the venture by e.GO Mobile AG and ZF Friedrichshafen planned to start series production of e.GO People Mover by the end of 2019 in Germany. This vehicle will be deployed as robo-taxis by transportation operator Transdev in Germany. Oxbotica, an autonomous vehicle software company, and Addison Lee, a London-based private hire taxi company, partnered to launch self-driving taxis by 2021.
Electric propulsion is estimated to account for the largest market size during the forecast period. Rising emission concerns has led to the demand for fuel-efficient vehicles. Robo-taxis would not just offer robotic assistance but usher in an era of fuel efficiency and carbon-free emissions. The collaboration between Volvo and Uber is expected to introduce self-driving cars in the mid-size luxury segment by 2021—50% of which would be fully electric cars. By 2030, two-thirds of the global population would reside in urban areas. Daimler is working with Bosch to develop self-driving electric cars in Germany that could be on the road by early 2020s. Full-electric robo-taxis are already in demand due to stringency in worldwide government regulations for an emission-free environment. The joint venture between Volvo and Baidu for electric self-driving taxis in China is an example of an ecofriendly and advanced technical approach. Likewise, the partnership between BMW and Daimler has raked in investments worth $1.13 billion in autonomous electric cars.
Asia Pacific is expected to lead the market during the forecast period because of the growth of the market in China, Japan, South Korea, and Singapore. Rising emission concerns, increasing shared mobility, focus on public transport, and high technological development in the region are driving the robo-taxi market in Asia Pacific. Companies such as DiDi, Aptiv, Baidu, Nissan, ZMP, and Hyundai are major players in the region. The growth is also driven by developments in Singapore, South Korea, China, and Japan. For instance, Singapore was the first country to test robo-taxis in 2016 publicly. nuTonomy started testing robo-taxis with Renault Zoes and Mitsubishi i-MiEv vehicles. South Korean automaker Hyundai has partnered with the U.S. startup Aurora Tech to develop robo-taxis in South Korea. Hyundai is expected to test the service by 2021. The company will deploy a fuel-cell electric Nexo and compact SUV Kona electric in Sejong for driverless taxi service. The vehicles would have Level 4 automation.
Europe is also expected to witness significant growth during the forecast period. The European region is projected to be dominated by countries such as Germany, France, Norway, and the Netherlands. Technological advancements and developed and supportive infrastructure have helped the fleet operators with testing and deployment in this region. According to the European Commission, there are about 180 automobile facilities across the EU, and the sector is the largest investor in R&D. EVs are expected to become the rational choice for buyers in Europe, as their prices are falling due to more economical batteries and increasing EV ranges. The charging infrastructure in Europe is also expected to become more widespread due to government support. Europe is in the initial phase of electric mobility. This will boost the overall demand for self-driving taxis in the region. Moreover, manufacturers such as Navya, Aptiv, EasyMile, Moia, and Daimler have a presence in the region.
The global robo-taxi market is dominated by major players such as Waymo (U.S.), Aptiv (Ireland), GM Cruise (U.S.), Ridecell (U.S.), Uber Technologies (U.S.), Navya (France), and EasyMile (France).